Industrials

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.

• In February 2022, Shimizu Corp (1803 JP) bought an additional 25% to get to 50.1% of Nippon Road (1884 JP). It wasn’t a great price.
• It was, however, a good trade to buy the dip after, as recommended. I expected Shimizu to come back in one to three years. It took three. 
• Like last time, the price is light. The multiple is low. There are no synergies in the price analysis, in specific violation of the METI Fair M&A/CorpTakeover Guidelines.  Bah humbug.

• Noted activist Yoshiaki MURAKAMI and associates owned ~12.5% in March 2024, perhaps a tad more. Now they own ~29%. 
• Integrated Construction Co INFRONEER Holdings (5076 JP) – congenitally allergic to paying full price for acquisitions – is buying Sumitomo Mitsui Construction (1821 JP) well below FAs’ DCF range midpoints.
• But MURAKAMI-san has tossed his cards in, agreeing to tender. This looks like it gets done, but there are interesting angles.

• Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
• The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
• The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. 

• SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
• SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
• In this note, we look at the company’s past performance.

• In Q1 FY12/25, revenue increased by 10.3% YoY to JPY1.5bn, while operating profit declined by 19.8%.
• Renewable Energy Service business revenue rose 54.3% YoY, with recurring profit returning to the black from a prior loss.
• Design Service business revenue increased 0.5% YoY, with a 4.3% rise in recurring profit due to efficiency improvements.

• CIMC Enric Holdings (3899 HK)‘s YTD decline in share price provides an opportunity to pick up this name, which sees a solid sequential earnings improvement this year. 
• 1Q25 revenue growth accelerated to 24.4%, from 2.9% in 2H25. While 1Q25 new orders have dropped, there is a sharp rebound in Apr, with a more positive 2H25 outlook.
• At 9.3x FY25 PER after going ex-dividend (27 May), it is cheap relative to 14.7% 3-year EPS CAGR. The stock is also trading at the low-bound of the 3-year range.  

• Ravi Infrabuild Projects Ltd (1607447D IN)  (RIPL) is looking to raise about US$178m in its upcoming India IPO. The bookrunners for the deal are Axis, Motilal.
• RIPL is one of the leading infrastructure construction firms in India, experienced in executing structural projects such as flyovers, bridges, railways, highways, and expressways.
• RIPL had grown 16.6x in terms of its average order size, reaching INR2,577m (as on Dec 2024), as per the company.

• Revenue increased to JPY63.5bn (+15.8% YoY), with operating profit at JPY2.5bn (+292.9% YoY) and recurring profit at JPY2.4bn (+298.0% YoY).
• Products HR business revenue was JPY28.1bn (+9.7% YoY), with segment profit at JPY750mn (+202.4% YoY).
• Real Estate business revenue was JPY12.5bn (+61.2% YoY), with segment profit at JPY1.5bn (+206.9% YoY).

• Consolidated sales for FY03/25 declined 0.3% YoY to JPY55.6bn, with operating profit down 94.4% YoY.
• Q4 parent orders increased 22.9% YoY to JPY8.0bn, driven by industrial robots and semiconductor equipment orders.
• HDSI forecasts 1H FY03/26 sales at JPY27.0bn, with operating profit of JPY300mn, recovering from previous losses.

• Kulr Technology (NASDAQ: KULR) makes technology to manage heat levels in batteries.
• We believe KULR has failed at building a product relevant to a large market.
• Now, with less than $11 mln in annual revenue after 12 years of trying, KULR appears to have built a cottage industry in promoting its own stock.

• In February 2022, Shimizu Corp (1803 JP) bought an additional 25% to get to 50.1% of Nippon Road (1884 JP). It wasn’t a great price.
• It was, however, a good trade to buy the dip after, as recommended. I expected Shimizu to come back in one to three years. It took three. 
• Like last time, the price is light. The multiple is low. There are no synergies in the price analysis, in specific violation of the METI Fair M&A/CorpTakeover Guidelines.  Bah humbug.

• Noted activist Yoshiaki MURAKAMI and associates owned ~12.5% in March 2024, perhaps a tad more. Now they own ~29%. 
• Integrated Construction Co INFRONEER Holdings (5076 JP) – congenitally allergic to paying full price for acquisitions – is buying Sumitomo Mitsui Construction (1821 JP) well below FAs’ DCF range midpoints.
• But MURAKAMI-san has tossed his cards in, agreeing to tender. This looks like it gets done, but there are interesting angles.

• Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
• The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
• The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. 

• SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
• SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
• In this note, we look at the company’s past performance.

• In Q1 FY12/25, revenue increased by 10.3% YoY to JPY1.5bn, while operating profit declined by 19.8%.
• Renewable Energy Service business revenue rose 54.3% YoY, with recurring profit returning to the black from a prior loss.
• Design Service business revenue increased 0.5% YoY, with a 4.3% rise in recurring profit due to efficiency improvements.

• CIMC Enric Holdings (3899 HK)‘s YTD decline in share price provides an opportunity to pick up this name, which sees a solid sequential earnings improvement this year. 
• 1Q25 revenue growth accelerated to 24.4%, from 2.9% in 2H25. While 1Q25 new orders have dropped, there is a sharp rebound in Apr, with a more positive 2H25 outlook.
• At 9.3x FY25 PER after going ex-dividend (27 May), it is cheap relative to 14.7% 3-year EPS CAGR. The stock is also trading at the low-bound of the 3-year range.  

• Ravi Infrabuild Projects Ltd (1607447D IN)  (RIPL) is looking to raise about US$178m in its upcoming India IPO. The bookrunners for the deal are Axis, Motilal.
• RIPL is one of the leading infrastructure construction firms in India, experienced in executing structural projects such as flyovers, bridges, railways, highways, and expressways.
• RIPL had grown 16.6x in terms of its average order size, reaching INR2,577m (as on Dec 2024), as per the company.

• Revenue increased to JPY63.5bn (+15.8% YoY), with operating profit at JPY2.5bn (+292.9% YoY) and recurring profit at JPY2.4bn (+298.0% YoY).
• Products HR business revenue was JPY28.1bn (+9.7% YoY), with segment profit at JPY750mn (+202.4% YoY).
• Real Estate business revenue was JPY12.5bn (+61.2% YoY), with segment profit at JPY1.5bn (+206.9% YoY).

• Consolidated sales for FY03/25 declined 0.3% YoY to JPY55.6bn, with operating profit down 94.4% YoY.
• Q4 parent orders increased 22.9% YoY to JPY8.0bn, driven by industrial robots and semiconductor equipment orders.
• HDSI forecasts 1H FY03/26 sales at JPY27.0bn, with operating profit of JPY300mn, recovering from previous losses.

• Kulr Technology (NASDAQ: KULR) makes technology to manage heat levels in batteries.
• We believe KULR has failed at building a product relevant to a large market.
• Now, with less than $11 mln in annual revenue after 12 years of trying, KULR appears to have built a cottage industry in promoting its own stock.

• With earnings today (which beat guidance), Mitsui Matsushima (1518 JP) announced upbeat guidance for next year, a very large dividend hike from ¥130/share to ¥230/share, and a Very Large Buyback.
• The buyback is ¥20bn (vs ¥47bn market cap) or 3.5mm shares (31.3%). It starts 2 June. Astute Murakami trackers may recognise the potential pattern here.
• If the company buys back all 3.5mm shares at just below book, EPS of ¥756 = 12.9% ROE and PER of 7.8x. Even up 30% from here that isn’t super-rich.

• In this edition: • Ahold Delhaize | Delhaize aims for market leadership in online groceries in Belgium • ASM International | looking for bolt-on acquisitions • Heineken | row with Jumbo not only on price gap but also on lower discount • InPost | signs contract with ASOS for D+1 OOH delivery in the UK • TKH Group | slow start of the year as expected, reiterates FY25 guidance • Alfen | revises both FY25 revenue and adjusted EBITDA guidance downward • Kendrion | Mobility continues its strong growth, Industrial mixed performance

• Sai Gon Cargo Service (SCS VN)  reported a solid set of Q1 2025 numbers, with revenue up 25% YoY and profits up 15% YoY.
• Volumes were up 10% YoY, and the balance revenue growth was from recent tariff hikes.  
• The stock trades at 8.0/7.6x FY24/25e PE and a 10% dividend yield (22% of market cap in cash), as trade wars remain an overhang on it. 

• From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
• In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
• For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).

• The company reported FY03/25 revenue of JPY208.4bn (+4.9% YoY) and operating profit of JPY11.0bn (-20.8% YoY).
• The company forecasts FY03/26 revenue of JPY220.0bn (+5.6% YoY) and operating profit of JPY11.9bn (+8.5% YoY).
• The medium-term management plan targets FY03/28 revenue of JPY280.0bn (+34.4% vs. FY03/25) and operating profit of JPY20.0bn (+82.3%).

• Orders decreased by 3.6% YoY to JPY24.5bn, while revenue increased 11.7% YoY to JPY20.3bn, boosting operating profit by 51.5%.
• Orders grew 35.5% YoY to JPY8.5bn, with revenue up 16.3% YoY, and operating profit surged 146.1% YoY.
• Orders fell 30.2% YoY to JPY3.3bn, revenue decreased 12.0% YoY, resulting in an operating loss of JPY234mn.

• Sales decreased by 8.7% YoY to JPY11.5bn, with operating profit down 15.9% YoY to JPY2.1bn.
• Special graphite product sales fell 18.4% YoY, while SiC-coated graphite product sales increased YoY.
• Gross profit declined 6.5% YoY to JPY4.4bn, with SG&A expenses rising 4.7% YoY to JPY2.2bn.

• FY03/25 saw gross sales rise 41.4% YoY to JPY290.4bn, with revenue up 8.0% to JPY93.7bn.
• Energy business revenue increased 18.4% YoY to JPY35.2bn, while Industrial Machinery revenue declined 10.1% YoY to JPY24.8bn.
• The company anticipates an extraordinary gain of JPY1.3bn from selling cross-shareholdings in 1H FY03/26.

• Vestis Corporation recently reported its fiscal second-quarter results for 2025, highlighting several key trends and challenges.
• The company faced a revenue decline, reporting $665 million for the quarter, a 2.7% decrease from the previous quarter.
• This result fell short of the anticipated growth.

• Tokyu Construction’s FY03/25 revenue was JPY338.0bn (+15.3% YoY), with operating profit at JPY9.5bn (+7.5% YoY).
• The company increased its budget for human capital and DX investment to JPY61.0bn, targeting FY03/31 goals.
• Dividend policy remains based on DOE of 4.0% or more, with potential for flexible share buybacks.

• With earnings today (which beat guidance), Mitsui Matsushima (1518 JP) announced upbeat guidance for next year, a very large dividend hike from ¥130/share to ¥230/share, and a Very Large Buyback.
• The buyback is ¥20bn (vs ¥47bn market cap) or 3.5mm shares (31.3%). It starts 2 June. Astute Murakami trackers may recognise the potential pattern here.
• If the company buys back all 3.5mm shares at just below book, EPS of ¥756 = 12.9% ROE and PER of 7.8x. Even up 30% from here that isn’t super-rich.

• In this edition: • Ahold Delhaize | Delhaize aims for market leadership in online groceries in Belgium • ASM International | looking for bolt-on acquisitions • Heineken | row with Jumbo not only on price gap but also on lower discount • InPost | signs contract with ASOS for D+1 OOH delivery in the UK • TKH Group | slow start of the year as expected, reiterates FY25 guidance • Alfen | revises both FY25 revenue and adjusted EBITDA guidance downward • Kendrion | Mobility continues its strong growth, Industrial mixed performance

• Sai Gon Cargo Service (SCS VN)  reported a solid set of Q1 2025 numbers, with revenue up 25% YoY and profits up 15% YoY.
• Volumes were up 10% YoY, and the balance revenue growth was from recent tariff hikes.  
• The stock trades at 8.0/7.6x FY24/25e PE and a 10% dividend yield (22% of market cap in cash), as trade wars remain an overhang on it. 

• From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
• In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
• For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).

• The company reported FY03/25 revenue of JPY208.4bn (+4.9% YoY) and operating profit of JPY11.0bn (-20.8% YoY).
• The company forecasts FY03/26 revenue of JPY220.0bn (+5.6% YoY) and operating profit of JPY11.9bn (+8.5% YoY).
• The medium-term management plan targets FY03/28 revenue of JPY280.0bn (+34.4% vs. FY03/25) and operating profit of JPY20.0bn (+82.3%).

• Orders decreased by 3.6% YoY to JPY24.5bn, while revenue increased 11.7% YoY to JPY20.3bn, boosting operating profit by 51.5%.
• Orders grew 35.5% YoY to JPY8.5bn, with revenue up 16.3% YoY, and operating profit surged 146.1% YoY.
• Orders fell 30.2% YoY to JPY3.3bn, revenue decreased 12.0% YoY, resulting in an operating loss of JPY234mn.

• Sales decreased by 8.7% YoY to JPY11.5bn, with operating profit down 15.9% YoY to JPY2.1bn.
• Special graphite product sales fell 18.4% YoY, while SiC-coated graphite product sales increased YoY.
• Gross profit declined 6.5% YoY to JPY4.4bn, with SG&A expenses rising 4.7% YoY to JPY2.2bn.

• FY03/25 saw gross sales rise 41.4% YoY to JPY290.4bn, with revenue up 8.0% to JPY93.7bn.
• Energy business revenue increased 18.4% YoY to JPY35.2bn, while Industrial Machinery revenue declined 10.1% YoY to JPY24.8bn.
• The company anticipates an extraordinary gain of JPY1.3bn from selling cross-shareholdings in 1H FY03/26.

• Vestis Corporation recently reported its fiscal second-quarter results for 2025, highlighting several key trends and challenges.
• The company faced a revenue decline, reporting $665 million for the quarter, a 2.7% decrease from the previous quarter.
• This result fell short of the anticipated growth.

• Tokyu Construction’s FY03/25 revenue was JPY338.0bn (+15.3% YoY), with operating profit at JPY9.5bn (+7.5% YoY).
• The company increased its budget for human capital and DX investment to JPY61.0bn, targeting FY03/31 goals.
• Dividend policy remains based on DOE of 4.0% or more, with potential for flexible share buybacks.

• Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
• CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.

• Quick screen shows ₩1T+ names under 0.4x PBR — mostly retail, financials, and holdcos. Locals are keeping an eye on these with the election theme in play.
• This isn’t just hopeful chatter — both parties are seriously leaning into value-up policies. With dividend tax reform and solid sector catalysts, locals see real potential in the post-election trade.
• Long regional banks, hedge with KB and Shinhan. In retail, long domestic names, short China-dependent ones. For holdcos, long Hanwha and Doosan, short CJ and Kolon.

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

• The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough. 
• The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders. 
• For that, this deal is NOT a done deal. There may be games played on this deal. 

• Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close. 
• The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples. 
• While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out. 

• Strong Execution: 3-yr PAT CAGR of ~22% with ₹80,354 Cr order book offers 2–4 years of revenue visibility from high-margin defence programs.
• Growth Levers: Expanding in seekers, EW, AI, and smart infra; 5 new units and key contracts like Akash, LRSAM, and Shakti drive forward pipeline.
• Valuation Stretch: Trading at ~45x FY25E P/E vs 3-yr average of 32x; pricing reflects peak sentiment and leaves little room for error.

• Trades below Cash and liquidation value and has a profitable operating business
• Operations have been consistently profitable and free cash flow generating
• Industry is not growing but getting consolidated. Market is pricing in a business to become zero

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

• Recruit Holdings (6098 JP)  reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
• Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
• Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

• Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
• CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.

• Quick screen shows ₩1T+ names under 0.4x PBR — mostly retail, financials, and holdcos. Locals are keeping an eye on these with the election theme in play.
• This isn’t just hopeful chatter — both parties are seriously leaning into value-up policies. With dividend tax reform and solid sector catalysts, locals see real potential in the post-election trade.
• Long regional banks, hedge with KB and Shinhan. In retail, long domestic names, short China-dependent ones. For holdcos, long Hanwha and Doosan, short CJ and Kolon.

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

• The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough. 
• The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders. 
• For that, this deal is NOT a done deal. There may be games played on this deal. 

• Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close. 
• The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples. 
• While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out. 

• Strong Execution: 3-yr PAT CAGR of ~22% with ₹80,354 Cr order book offers 2–4 years of revenue visibility from high-margin defence programs.
• Growth Levers: Expanding in seekers, EW, AI, and smart infra; 5 new units and key contracts like Akash, LRSAM, and Shakti drive forward pipeline.
• Valuation Stretch: Trading at ~45x FY25E P/E vs 3-yr average of 32x; pricing reflects peak sentiment and leaves little room for error.

• Trades below Cash and liquidation value and has a profitable operating business
• Operations have been consistently profitable and free cash flow generating
• Industry is not growing but getting consolidated. Market is pricing in a business to become zero

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

• Recruit Holdings (6098 JP)  reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
• Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
• Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

• Nissin Corp (9066 JP) shares were up 10.3% based on a Bloomberg report that it would be privatised through a Bain-sponsored MBO. 
• The deal is expected to exceed JPY100 billion. Assuming this refers to a market cap, the implied offer price is around JPY6,500 (21.5% premium to last close).
• While the rumoured offer represents an all-time high share price, it is light compared to precedent and peer multiples. A long-dated offer makes it susceptible to a counterbid. 

• Next day’s base price uses the 3:30pm close—NXT’s after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.
• NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.
• No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are set to launch H Share listings.
• Event-Driven developments: Imagica Robot Holdings (6879 JP), Mitsubishi Shokuhin (7451 JP), NTT Data Corp (9613 JP), Shibaura Electronics (6957 JP), Torii Pharmaceutical (4551 JP), ZEEKR (ZK US). 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are gearing up for an IPO launch soon.
• On the placements front, there were two primary placements in Hong Kong, along with a number of lockup expiries coming up.

• Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)‘s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix & increased competitive intensity.
• Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.
• Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.

• FY03/25 saw a 9.4% YoY sales increase, driven by a weaker yen and strong Japan and Southeast Asia performance.
• Operating profit rose 21.9% YoY due to higher sales and improved margins, while net income decreased slightly.
• FY03/26 forecasts sales growth but profit decline, with concerns over US tariffs, inflation, and geopolitical issues.

• FY03/25 results: Orders JPY206.3bn (+1.3% YoY), revenue JPY221.8bn (+18.1% YoY), operating profit JPY13.1bn (+44.1% YoY).
• FY03/26 forecast: Orders JPY230.0bn (+11.5% YoY), revenue JPY220.0bn (-0.8% YoY), operating profit JPY12.0bn (-8.4% YoY).
• DJK’s “V2030” strategy targets JPY18.0bn operating profit by FY03/31, with ROE of 10% or higher.

• Nissin Corp (9066 JP) shares were up 10.3% based on a Bloomberg report that it would be privatised through a Bain-sponsored MBO. 
• The deal is expected to exceed JPY100 billion. Assuming this refers to a market cap, the implied offer price is around JPY6,500 (21.5% premium to last close).
• While the rumoured offer represents an all-time high share price, it is light compared to precedent and peer multiples. A long-dated offer makes it susceptible to a counterbid. 

• Next day’s base price uses the 3:30pm close—NXT’s after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.
• NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.
• No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are set to launch H Share listings.
• Event-Driven developments: Imagica Robot Holdings (6879 JP), Mitsubishi Shokuhin (7451 JP), NTT Data Corp (9613 JP), Shibaura Electronics (6957 JP), Torii Pharmaceutical (4551 JP), ZEEKR (ZK US). 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are gearing up for an IPO launch soon.
• On the placements front, there were two primary placements in Hong Kong, along with a number of lockup expiries coming up.

• Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)‘s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix & increased competitive intensity.
• Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.
• Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.

• FY03/25 saw a 9.4% YoY sales increase, driven by a weaker yen and strong Japan and Southeast Asia performance.
• Operating profit rose 21.9% YoY due to higher sales and improved margins, while net income decreased slightly.
• FY03/26 forecasts sales growth but profit decline, with concerns over US tariffs, inflation, and geopolitical issues.

• FY03/25 results: Orders JPY206.3bn (+1.3% YoY), revenue JPY221.8bn (+18.1% YoY), operating profit JPY13.1bn (+44.1% YoY).
• FY03/26 forecast: Orders JPY230.0bn (+11.5% YoY), revenue JPY220.0bn (-0.8% YoY), operating profit JPY12.0bn (-8.4% YoY).
• DJK’s “V2030” strategy targets JPY18.0bn operating profit by FY03/31, with ROE of 10% or higher.